Corporate Board minutes: June 2024

Attendees and apologies

Members

• John-Paul Marks (Chair), Permanent Secretary
• Roy Brannen, DG Net Zero
• Lesley Fraser, DG Corporate
• Gregor Irwin, DG Economy
• Caroline Lamb, DG Health and Social Care 
• Louise MacDonald, DG Communities
• Lisa McGuinness, Director Strategy, Performance, Delivery and Resilience (SPDR) (for DG Strategy and External Affairs)
• Belinda Oldfield, Non-Executive Director (NXD)
• Neil Rennick, DG Education and Justice
• Jim Robertson NXD and Chair of Scottish Government Audit and Assurance Committee (SGAAC)
• Jayne Scott, NXD and Deputy Chair SGAAC
• Alyson Stafford, DG Scottish Exchequer
• Jenny Stewart, NXD

In attendance

• Jennie Barugh, Director of Exchequer Strategy  (item 5)
• Andrew Bruce, Director of Communications and Ministerial Support
• Alison Cumming, Director of Public Spending (item 5)
• Jonathon Curry , Deputy Director, People Strategy (item 4)
• Nick Ford, Director of Procurement and Property (item 8)
• Anna Kynaston, PPS to Permanent Secretary
• Susan Malaney, Senior Finance Manager (item 5)
• Simon Mair, Deputy Director, Place Based Service and Reform (item 8)
• Frank Martin, Head of the Programme for Government Unit (item 7)
• Mary McAllan, Director of Covid Recovery and Public Service Reform (item 8)
• Jackie McAllister, Chief Financial Officer (CFO)
• Iain MacNab, Head of Risk Management Policy (item 6)
• Ruaraidh MacNiven, Solicitor to the Scottish Government (SG) and Director of SG Legal Directorate
• Sophie Reid, Governance Support and Improvement Adviser
• Nicola Richards, Director, People
• Kirsty Walker, Interim Board Secretary and Deputy Director, Executive Team Strategic Governance Office (ETSGO)
• Robyn Whitelaw-Grant, Strategic Lead Risk, Control and Assurance (item 6)

Secretariat

• James Gibbon, Corporate Governance Manager, ETSGO
• Stuart MacArthur, Head of Strategic Governance, ETSGO
• Owen McMahon, Executive Team Administration Assistant, ETSGO
• Lesley Patrick, Head of Corporate Governance Team, ETSGO

Apologies

• Joe Griffin, DG Strategy and External Affairs
• David Martin, NXD

Items and actions

Welcome, apologies, declarations of interest, and minutes

The Chair welcomed members and attendees to the second Corporate Board (CB) meeting of 2024. The minute of the 19 March 2024 meeting was approved as an accurate record, and no declarations of interest offered. The Chair noted it was Jim Robertson’s final CB meeting, having completed his term as Chair of SGAAC, and offered thanks for his contribution. Interim Board Secretary and Deputy Director, ETSGO provided an overview of progress with actions on the action tracker.

SGAAC Chair update

Chair of SGAAC summarised key points from the meeting of SGAAC on 3 June 2024. SGAAC had continued to withhold assurance on the path to balance and medium-term fiscal sustainability. This was attributed to three main factors: the delayed availability of the Medium-Term Financial Strategy (MTFS), draft Tax Strategy and Infrastructure Investment Plan due to pre-election period restrictions; the financial challenges within Health and Social Care and Education and Justice; and uncertainty around public sector pay settlements. Chair of SGAAC noted that there was also discussion of risk appetite statements; role-modelling completion of mandatory risk training; and the importance of candour in the Certificates of Assurance exercise.

Corporate governance review and future role of CB 

Interim Board Secretary and Deputy Director of ETSGO introduced the item. Governance Support and Improvement Adviser highlighted the improvements in participation practices, and the importance of continued good habits.

In discussion the Board noted:

• The importance of considering risk management when agreeing agendas under the new DG Assurance approach, and of ensuring opportunity to discuss below the line papers when required
• Support for further scoping of the potential return of Exchequer Board to the core governance framework, including considering its relationship with other financial governance related fora
• Support for strengthening the link between DG Health and Social Care and the wider governance framework
• Support for concise papers, whilst being mindful of providing sufficient detail
• Specific points to consider when implementing the recommendations: whether a clearer threshold for items to be considered at ET in Investment Assurance mode would be helpful; the position of the Global Climate Emergency Board within the SG governance landscape; and how to ensure appropriate focus for governance, equality, diversity and inclusion

The Chair concluded that there was strong endorsement from CB for the recommendations.

Organisational health – people

Deputy Director, People Strategy summarised the latest People-related insights, including positive progress on workforce position, the decreasing the use of Temporary Promotion (TP), and the ongoing concern and monitoring of Average Working Days Lost (AWDL). 

In discussion the Board noted:

• The importance of understanding how stress impacts AWDL levels, with discussion at DG Assurance meetings recommended
• A perceived normalisation of long hours and weekend working in some areas of the organisation
• The importance of an effective absence management process, adhered to consistently by line managers
• Positive progress on workforce size during the previous financial year, with challenging targets for the year ahead – especially given reductions already delivered in contingent worker levels
• The importance of having the right people in the right roles, as well as meeting targets on workforce size
• The anticipated improvements to the quality of absence and sickness data through the introduction of Oracle Cloud
• The progress made by the organisation regarding gender balance, disability and LGBTQI+ representation, and plans to address age diversity including through graduate schemes and apprenticeships

Organisational health – finance 

CFO, DG Scottish Exchequer, Director of Public Spending and Director of Exchequer Strategy provided an update on the 2023-24 provisional outturn, 2024-25 position, and medium-term position.

In discussion the Board noted:

• Options to address Health and Social Care pressures were being explored and considered
• The relevance of the health of the nation to the long-term affordability of health and social care services
• A multi-year pay policy framework was published in May 2024, and the working group had remained active
• The significant funding uncertainty due to the upcoming UK Government election, with consideration being given to potential impacts of different scenarios 
• The pre-election period had delayed some planned publications. Discussions were ongoing regarding materials that could be provided in the lead-up to publication of the Programme for Government (PfG)

Organisational health – risk 

Strategic Lead Risk, Control and Assurance summarised key changes to the corporate risk landscape since CB last met. It was noted that the Corporate Risk Register (CRR) would likely be re-evaluated following publication of the PfG. Director SPDR provided an overview of the strategic risk landscape. The Horizon Scanning 2024 Project exploring longer-term risks had begun, and engagement with young people and further engagement with NXDs was planned. Following agreement with ET, management of the Civil Contingencies Risk was moving to a Senior Responsible Officer model. Work on critical national infrastructure and winter preparedness was highlighted. 

In discussion, the Board noted:

• Gratitude to colleagues who had contributed to all Freedom of Information cases from the previous week receiving a response within the agreed timeframe
• The SGAAC discussion in June 2024 which noted the latest Child Poverty Programme Board not being assured on progress
• The need to consider mitigation strategies for a short-term operational risk presented by the UK Government election
• The importance of an audit trail for any changes to the CRR following PfG publication
• Positive progress on risk appetite statements, with more work anticipated on embedding further

Organisational health – performance and delivery 

Director SPDR provided an overview of the Directorate’s role in supporting delivery of the First Minister’s priorities. Areas of focus were noted, including aligning fiscal and strategic processes; facilitating cross-government and partnership working; providing direct support to teams to help deliver critical priorities; and supporting improved governance and decision making – including development of a dashboard monitoring strategic priorities.

In discussion the Board noted:

• The welcome progress made to date
• The importance of having the optimal levels of monitoring for organisational performance and for organisational delivery
• The need to ensure governance arrangements are sufficient, but not over-complicated
• The importance of successfully engaging businesses around the PfG, and creating conditions for them to support commitments

Public service reform 

Director of Covid Recovery and Public Service Reform (PSR) provided an update on progress with the PSR programme and priorities for the next quarter. The continued importance of PSR and scale of the change required was highlighted, as was the need to be able to evaluate and understand progress and impact. 

Any other business 

No other business was raised.